Saigon Railways, one of the biggest subsidiaries of state-owned Vietnam Railways, has met its initial public offering target after it sold 7.21 million shares and raised VND72.2 billion (US$3.15 million).

The shares, equivalent to a 14.33 percent stake in the company, were bought by 20 local investors through an auction on Monday, the government's website reported.

According to the Ministry of Transport's plans, Saigon Railways will sell another 14.33 percent stake to strategic investors and 11.34 percent to its employees.

Vietnam Railways, which originally owned 100 percent stake in the company, will remain to hold a controlling stake of 60 percent, according to the website.

A file photo of a Vietnam Railways train. Photo: Ngoc Thang.

On the same day the Hanoi Stock Exchange announced that interested investors have so far registered to buy only 2.17 percent of the 11.38 million shares that Hanoi Railways, another subsidiary of Vietnam Railways, plans to sell in its upcoming IPO on Thursday, it said.

The value of the offered shares is equivalent to a 14.2 percent stake in the company. It will also sell more shares to strategic investors and employees, in order to also reduced the state-owned stake to around 60 percent.

Vietnam Railways, the only train operator, will also sell between 25-49 percent of its stakes in another five subsidiaries, according to a plan revealed by the transport ministry last month.